Q: What is the current Term of the MPEG-2 Systems Patent Portfolio License? A: The License is renewable (Section 6.1) for successive five-year periods for the life of any MPEG-2 Systems Patent Portfolio Patent, subject to reasonable amendment of royalty terms and rates (not to increase for a specific sublicense by more than 10%). Current Royalty rates (below) apply through December 31, 2020.

Q: Is there a limitation on the amount that royalty rates may increase at each renewal?A: If royalty rates were to increase for a specific sublicense, they will not increase by more than 10% of the royalty rates for that sublicense set forth in the License immediately prior to renewal.

Q: What are the royalties for the MPEG-2 Systems Patent Portfolio License and on which products are they payable?A: The royalty is ¥20 per Mobile MPEG-2 Systems Signal Receiver and $0.25 per product for all other MPEG-2 Systems Devices (see sections 1.9 and 3.1).

Q: What is the effect on Licensees when new patents are added to the MPEG-2 Systems Patent Portfolio License? A: New Licensors and new patents are added with no increase in royalty rates during the current Term of the License. Licensees enjoy coverage under such patents from the License effective date (January 1, 2006) forward.

Q: What are the obligations of the Licensors with regard to their essential MPEG-2 Systems Essential patents? A. Each Licensor is under an obligation to grant to MPEG LA a worldwide, nonexclusive license under all MPEG-2 Systems Essential Patents that it has the right to license or sublicense to allow MPEG LA to grant worldwide, non-exclusive sublicenses under such patents under terms of the MPEG-2 Systems Patent Portfolio License.

Q: How does MPEG LA ensure that sublicensing remains fair, reasonable and non-discriminatory?A: The patent portfolio license offered by MPEG LA has the same terms and conditions for all licensees. Further, the license also ensures a fair process of obtaining new MPEG-2 Systems essential patents and for a licensee to license its own MPEG-2 Systems Essential Patents.